Question

1. An employee earned $3,450 for the current period. Calculate the total and individual amounts to be withheld for social security (6.2%), Medicare (1.45%) and federal income tax (15%) assuming the entire employee's pay is subject to FICA taxes.

Answer 1

Here is the amount you would withhold from the employee's paycheck for social security tax:

Employee wage= $3,450

$3,450×6.2%=$214

Social security tax=$214.

Since the employer withholding from the employee's pay, you also contribute $214. A total of $428 goes towards social security tax.

Here is the amount you would withhold from the employee's paycheck for Medicare tax:

Employee's wage =$3,450

$3,450×1.45%=$50

Medicare tax=$50

Withhold $50 from the employee's pay and pay a matching portion of $50. A total of $100 goes towards Medicare tax.

The total FICA amount you must deposit is $528.

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